Loan Sharking


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Loan Sharking

The practice of making illegal loans, usually by charging an extraordinarily high interest rate. For example, a loan shark may lend $1000 at a 2000% annualized interest rate, which is against the law in most states. Loan sharks are not financial institutions; indeed they often "collateralize" their loans with threats of violence. Loan sharking often is associated with organized crime. See also: Usury.
References in periodicals archive ?
The loan sharking group then brings the victim to a hotel room where he or she may be tortured before being ransomed off.
There already are criminal laws against loan sharking, but proving it is the big problem because people are too ashamed or intimidated to go to the police.
The North East is a hotspot for illegal loan sharking and the team have been highly effective, having identified 1,083 illegal lenders and saved borrowers more than pounds 2m.